#THE COFFEE ACT, 1942 
______ 

##ARRANGEMENT OF SECTIONS 
______ 

SECTIONS 

1. Short title, extent and duration. 
2. Declaration as to expediency of Union control. 
3. Definitions. 
4. Constitution of the Board. 
5. Incorporation of the Board. 
6. Vesting of property in the Board. 
6A. Consultation with the Board. 
7. Committees, staff and agents. 
8. Salary and allowances of Chairman. 
8A. Vice-Chairman. 
9. Chief Coffee Marketing Officer, Secretary and other Staff. 
10. Dissolution of the Board. 

*Duties of Customs and of Excise*

11. [Repealed.]. 
12. [Repealed.]. 
13. [Repealed.]. 

*Registration*

14. Registration of owners of coffee estates. 
15. Power of State Government to make rules. 

*Control of Sale, Export and Re-import of Coffee*

16. Fixation of prices for sale of coffee. 
17. Sale of coffee in excess of free sale quota. 
18. Sale of coffee, how made. 
19. [Repealed.]. 
20. Export of coffee. 
21. Re-import of coffee exported from India. 
22. Free sale quota. 
23. Returns to be made by registered owners. 
24. Licences for sale of uncured coffee. 
25. Surplus coffee and surplus pool. 
26. Sales of coffee by the Board. 

*Curing of Coffee*

27. Coffee to be cured in licensed curing establishments. 
28. Licensing of curing establishments. 
29. Information to be supplied to the Board in connection with curing. 

*Finance*

30. Separate funds to be maintained by the Board. 
31. General fund. 
32. Pool fund. 
32A. Power of the Board to make donation to the Gandhi National Memorial Fund. 
33. Power to borrow. 

*Penalties and Procedure*

34. Payments to registered owners. 
35. Failure to register. 
36. Contraventions of sections 16, 17 and 18. 
37. Unlicensed curing establishment. 
37A. Contravention of section 23(1). 
38. False returns. 
38A. Contravention of section 25. 
38B. Powers to seize coffee withheld from inclusion in surplus pool. 
39. Obstruction. 
39A. Offences by companies.
40. Cognizance of offences. 

*General*

41. [Repealed.]. 
42. Control by the Central Government. 
43. Appeals to the Central Government. 
44. Inspection of records. 
45. Accounts of the Board. 
46. Inspection of records of the Board and obtaining of copies. 
47. Contracts. 
47A. Bar of legal proceedings. 
48. Power of the Central Government to make rules. 
49. Repeal of Act 14 of 1935. 
50. [Repealed.]. 



#THE COFFEE ACT, 1942 

##ACT NO. 7 OF 1942 

[2nd March, 1942.] 

An Act to provide for the development under the control of the Union of the coffee industry. 

  WHEREAS it is expedient to provide for the development under the control  of  the  Union  of  the 
coffee industry ; 

  It is hereby enacted as follows : — 

1. **Short title, extent and duration.**—(1) This Act may he called the Coffee Act, 1942. 

(2) It extends to the whole of India except the State of Jammu and Kashmir [^1]. 

2. **Declaration as to expediency of Union control.**—It  is  hereby  declared  that  it  is 
expedient in the public interest that the Union should take under its control the coffee industry. 

3. **Definitions.**—In  this  Act,  unless  there  is  anything  repugnant  in  the  subject  or 
context,— 

  (a) “the Board” means the Coffee Board constituted under section 4; 

  (aa) “Chairman” means the Chairman of the Board;

  (b) “coffee” means the commodity derived from the fruit of the rubiaceous  plant known 
by  that  name,  and  includes  raw  coffee,  cured  coffee,  uncured  coffee,  roasted  coffee  and 
prepared coffee; 

[^9][(c) “Commissioner”, means a Commissioner of Customs as specified in clause (b) of section 3 
of the Customs Act, 1962 (52 of 1962); 

  (d) “curing” means the application to raw coffee of mechanical processes other than pulping for 
the purpose of preparing it for marketing; 

  (e) “curing establishment” means any place to which raw coffee is sent by a registered owner for 
curing,  and  includes  any  estate  which  the  Board  may  declare  to  be  a  curing  establishment  for  the 
purposes of this Act; 



[^1]. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu 
and Kashmir and the Union territory of Ladakh. 
[^9]. Subs. by Act 22 of 1995, s. 85, for cl. (c).



  (ee) “dealer” means a person carrying on the business of selling coffee, whether wholesale or by 
retail; 

  (f) “estate”  means  an  area  administered  as  one  unit  which  contains  land  planted  with 
coffee plants; 

  (ff) “India” means the territory of India excluding the State of Jammu and 
Kashmir[^1]; 

  (g) “Indian  Coffee  Cess  Committee ”  means  the  Indian  Coffee  Cess  Committee  constituted 
under the Indian Coffee Cess Act, 1935 (14 of 1935); 

[^3][(h)  “free  sale  quota”  means  that  portion,  stated  in  terms  of  bulk  or  weight,  of  the 
whole  of  the  coffee  produced  by  the  estate  in  the  year,  which  a  registered  estate  is 
permitted under this Act to sell;] 

  (i) “owner”, in relation to any land planted with coffee plants, includes, — 

     (1) any agent of the owner, and 

     (2) a mortgagee, lessee or other person in actual possession of the land; 

  (j) “prescribed” means prescribed by rules made under this Act; 

  (k) “registered estate” means an estate in respect of which an owner is registered under 
sub-section  (1)  of  section  14,  and  includes also any  estate  in  respect  of which  an  owner  is 
required to be registered under the provisions of that sub-section; 

  (l) “registered  owner”  means  an  owner  of  a  registered  estate  who  has  been  or  is 
required to be registered under sub -section (1) of section 14; 

  (m) “surplus  pool”  means  the  stock  of  coffee  accumulated  by  the  Board  out  of  the  amounts 
delivered to the Board under section 25; 

  (n) “year” means the period of twelve months beginning with the first day of July and ending 
with the thirtieth day of June next following. 

4. **Constitution of the Board.**—(1) The Board constituted by the name of the Indian 
Coffee  Market  Expansion  Board  under  section  4  of  the  Indian  Coffee  Market   Expansion 
Ordinance, 1940 (13 of 1940), shall be the Coffee Board for the purposes of this Act. 

  (2) The Board shall consist of— 

     (a) a  Chairman  to  be  appointed  by  the  Central  Government  by  notification  in  the 
Official Gazette; 

     (b) three Members of  Parliament of  whom  two  shall be elected by the  House  of 
the People and one by the Council of States; and 

     (c) such  number  of  other  members  not  exceeding  twenty-nine  as  the  Central 
Government may think expedient, to be appointed by that Government by notification 



[^1]. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of  Jammu 
and Kashmir and the Union territory of Ladakh. 
[^3]. Subs. by Act 23 of 1994, s. 2, for cl. (h) (w.e.f. 14-1-1994).



in  the  Official  Gazette  from  among  persons  who  are  in  its  opinion  capable  of 
representing,— 

  (i) Governments of the principal coffee-growing States; 

  (ii) coffee-growing industry; 

  (iii) coffee trade interests; 

  (iv) curing establishments; 

  (v) interests of labour; 

  (vi) interests of consumers; and 

  (vii)  such  other  interests  as,  in  the  opinion  of  the  Central  Government,  ought  to  be 
represented on the Board. 

(2A) The number of persons to be appointed as members from each of the categories specified in 
clause (c) of sub-section (2), the term of office of, the procedure to be followed in the discharge of 
their  functions  by,  and  the  manner  of  filling  vacancies  among,  the  members  of  the  Board  shall  be 
such as may be prescribed. 

(2B) Any officer of the Central Government when deputed by that Government in this  behalf 
shall have the right to attend meetings of the Board and take part in the proceedings thereof but 
shall not be entitled to vote.

(4) No  act  done  by  the  Board  shall  be  questioned  on  the  ground  merely  of  the  existence  of  any 
vacancy in, or any defect in the constitution of, the Board. 

(5) It  is  hereby  declared  that  the  office  of  member  of  the  Board  shall  not  disqualify  its 
holder for being chosen as, or for being, a member of either House of Parliament. 

5. **Incorporation of the Board.** —  The  Board  shall  be  a  body  corporate  by  the  name  of  the 
Coffee Board, having perpetual succession and a common seal, with power to acquire and 
and  hold  property,  both  movable  and  immovable,  and  to  contract,  and  shall  by  the  said  name  sue 
and be sued. 

6. **Vesting of property in the Board.**—So long as this Act remains in force all property, mov-
able or immovable, of or belonging to the Indian Coffee Cess Committee shall vest in the Board and 
all debts and liabilities of the said Committee shall be transferred to the Board, and the officers and 
servants of the said Committee shall be officers and servants on the staff of the Board and the said 
Committee shall be suspended. 

6A. **Consultation with the Board.**—Before  taking  any  action  touching  the  affairs  of  the  Board 
under this Act, the Central Government shall ordinarily consult the Board: 

  Provided that no action taken by the Central Government shall be invalid or called in question merely 
on the ground that the action was taken without such consultation. 

7. **Committees, staff and agents.** —

(2) The Board may appoint such committees for such purposes and may employ such staff as it thinks 
necessary for the efficient discharge of its functions under this Act. 

(3) The  Board  may  authorise  agents  to  discharge  on  its  behalf  its  functions  in  relation  to  the 
marketing, storing and curing of coffee. 

8. **Salary and allowances of Chairman.**—The  Chairman  shall  be  entitled  to  such  salary  and 
allowances and such conditions of service in respect of leave, pension, provident fund and other matters 
as may, from time to time, be fixed by the Central Government. 

8A. **Vice-Chairman.**—The Board shall elect from amongst its members a Vice-Chairman who shall 
exercise such of the powers and perform such of the duties of the Chairman as may be prescribed or as 
may be delegated to him by the Chairman. 

9. **Chief Coffee Marketing Officer, Secretary and other staff.**—(1) The Central Government 
shall appoint an officer to be called the Chief Coffee Marketing Officer and a Secretary to the Board 
and may appoint a Deputy Secretary to the Board and such number of Marketing Officers as may be 
necessary,  to  exercise  such  powers  and  to  perform  such  duties  under  the  direction  of  the  Board  as 
may be prescribed. 

(2)  The  officers  appointed  under  this  section  shall  be  entitled  to  such  salaries  and  allowan ces 
and  such  conditions  of  service  in  respect  of  leave,  pension,  provident  fund  and  other  matters  as 
may, from time to time, be fixed by the Central Government.

10. **Dissolution of the Board.**—When  the  Board  is  dissolved  by  reason  of  this  Act  having 
ceased  to  be  in  force,  the  unexpended  balance  of  all  money  received  by  the  Board  under  the 
Coffee  Market  Expansion  Ordinance,  1940  (13  of  1940),  or  under  this  Act  except  money  in  the 
pool fund, shall be disposed of in such manner as the Central Government may direct. The Central 
Government  shall  disburse  the  money  in  the  pool  fund  in  the  same  manner  as  the  Board  would 
have done had it continued to exist. 

*Duties of Customs and of Excise*

[11. **Duty of customs.**] *Rep.  by the Cess Laws (Repealing and Amending) Act,* 2006 (24  of  2006), 
s. 2 *and the First Schedule (w.e.f.* 1-6-2006). 

12. **[Duty of excise.]** *Omitted by the Coffee (Amendment) Act,* 1994 s. 3 (w.e.f. 14-1-1994). 

[13. **Payment  of  proceeds  of  duty  to  the  Board.]** *Rep.  by  the  Cess  Laws  (Repealing  and 
Amending) Act,* 2006 (24 of 2006) s. 2 *and First Schedule (w.e.f.* 1-6-2006). 

*Registration*

14. **Registration of owners of coffee estates.**— (1) Every owner  of  land  planted  with 
coffee  plants,  whether  such  land  is  comprised  in  one  estate  or  in  more  than  one  estate  and 
whether  it  is  situated  wholly  or  only  partly  in  India,  shall,  before  the  expirati on  of  one  month 
from the date on which he first became owner of such estate or estates, apply to the registering 
officer appointed in this behalf by the State Government to be registered as an owner in respect 
of  each  estate  owned  by  him,  and  any  registration  made  before  the  commencement  of  the 
Coffee  (Amendment)  Act,  1961  (48  of  1961)  shall  be  deemed  to  have  been  made  under  this 
sub-section. 

(3) A  registration  once  made  shall  continue  in  force  until  it  is  cancelled  by  the 
registering officer. 

15. **Power of State Government to make rules.**—(1) The State Government may, by notification in 
the Official Gazette, make rules to carry into effect the provisions of section 14. 

(2) Without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may  prescribe 
the form of the application for registration and for cancellation of registration, the fee payable 
on  such  applications,  the  particulars  to  be  included  in  such  applications,  the  procedure  to  be 
followed in granting and cancelling registration, the registers to be  kept by registering officers, 
and the supply by registering officers of information to the Board. 

*Control of Sale, Export and Re-import of Coffee*

16. **Fixation of prices for sale of coffee.**—(1)  The  Central  Government  may by 
notification in the Official Gazette fix the price or prices at which coffee may be sold wholesale 
or retail in the Indian market. 

(2) No registered  owner  or licensed curer  or dealer shall sell coffee  wholesale or retail  in 
the Indian market at a price or prices higher than t he price or prices fixed under this section.

[^6][17. **Sale of coffee in excess of free sale quotas.**—No  registered  owner  shall  sell  or 
contract to sell coffee from any registered estate if by such sale the free  sale quota allotted to 
that estate is exceeded  nor shall a registered owner sell or contract to sell any coffee produced 
on his estate in any year for which no free sale quota is allotted to the estate.] 

18. **Sale of coffee, how made.**—No registered owner shall sell coffee unless either — 

  (a) it has been cured at or is delivered to the buyer through a curing establishment licensed under 
section 28, or 

  (b) it is sold under and in accordance  with the  provisions of a licence procured from the Board 
under section 24. 

[^6]. Subs. by Act 23 of 1994, s. 5, for s. 17 (w.e.f. 14-1-1994). 



19. **[Storage  or  sale  of  coffee  on  or  from  unregistered  estate.]** *Rep.  by  the  Coffee  (Amendment) 
Act,* 1961 (48 of 1961), s. 8 (w.e.f. 19-4-1962). 

20. **Export of coffee.**—No coffee shall be exported from India otherwise than by the 
Board or  under  an authorisation  granted  by  the Board in the  prescribed manner  and  in  the pre - 
scribed cases, and the provisions of the [^2][Customs Act, 1962 (52 of 1962), shall have effect as if 
the  provision  made  by  this  section  had  been  made  by  notification  issued  under  section  11] of 
that Act: 

  Provided that nothing herein contained shall apply to coffee — 

     (i) shipped  as  stores  on  board  any  vessel  or  aircraft  in  such  quantity  as  the 
[^4][Commissioner]  considers  reasonable,  having  regard  to  the  number  of  the  crew  and 
passengers and the length of the voyage or journey, as the case may be, on which the vessel 
or aircraft is about to proceed, or 

[^5][(ii) carried as personal baggage of a passenger, not exceeding such quantities as the 
Central Government may, by notification  in the Official Gazette, specify, or 

     (iii) exported for such purposes and in such quantities as the Central Government may specify in 
the like manner :] 

  Provided further that the Central Government may, by order in writing, specify the quan -
quantity  of  coffee  which  shall  be  permitted  for  export  during  any  year  and  where  any  such 
order is made, no coffee shall be exported from India in excess of the said quantity : 

  Provided  further  that  the  Central  Government  may  exempt  from  the  operation  of  this 
section,  either  absolutely  or  subject  to  conditions,  the  export  of  coffee  from India to the 
State of Jammu and Kashmir[^1] or to any foreign settlement bounded by India. 

21. **Re-import of coffee exported from India.**—(1) No coffee which has been exported from 
India shall be re-imported into India except under and in accordance with permit granted by the 
Board. 

(2) The Board may in any fit case grant such a permit and no charge shall be made 
therefor . 

[^8][22. **Free sale quota.**—(1) Unless with the previous  sanction of the Central Government 
the  Board  decides  that  no  free  sale  quotas  shall  be  allotted,  the  Board  shall,  as  soon  as  may 
be, allot to each registered estate a free sale quota for the year. 

(2) The  free  sale  quota  shall  be  a  fixed  percentage,  common  to  all  registered  estates,  not 
exceeding fifty per cent. of the probable total production of the estate in the year as estimated by 
the Board : 

  Provided that the Board may, with the previous sanction of the Central Government,  allot 
such quota at a percentage higher than fifty per cent. of the said probable total production. 

[^1]. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of  Jammu 
and Kashmir and the Union territory of Ladakh. 
[^2]. Subs. by Act 23 of 1994. s. 6, for certain words (w.e.f. 14-1-1994). 
[^4]. Subs. by Act 22 of 1995, s. 85, for “Collector”. 
[^8]. Subs. by Act 23 of 1994, s. 7, for s. 22 (w.e.f. 14-1-1994). 



(3) The  Board  may  at  any  time  vary  the  free  sale  quota  by  varying  the  fixed  percentage 
common to all registered estates, or may express the whole or any part of the  free sale quota of 
an estate in terms of bulk instead of in terms of weight.] 

23. **Returns to be made by registered owners.**—(1) A registered owner shall furnish to the 
Board at the prescribed times and in the prescribed manner such returns as may be prescribed. 

(2) If any registered owner fails to furnish the returns required under sub -section (1) in res-
pect of any estate, the Board may without prejudice to any penalty to which the said owner is 
liable under section 37A refuse to allot a free sale quota to that estate, or, where a free sale 
sale quota has already been allotted, may cancel it. 

(3) The Board  may authorise an officer to visit any estate at any time to verify the accuracy 
of any return made under this section or to ascertain the productive  capacity of the estate. 

24. **Licences for sale of uncured coffee.**—The registered owner of any estate may, subject to 
the  prescribed  conditions  and  so  long  as  the free sale quota allotted  to  that  estate  will  not  be 
exceeded  by  the  proposed  sale,  obtain  from  the  Board  a  licence  for  the  sale  from  that  estate  of 
uncured coffee. 

25. **Surplus coffee and surplus pool.**—(1) All coffee produced by a registered estate in excess 
of  the  amount  specified  in  the free sale quota allotted  to  that  estate or when no free sale 
quota have  been  allotted  to  estates,  all  coffee  produced  by  the  estate,  shall  be  delivered  to  the 
Board  for  inclusion  in  the  surplus  pool  by  the  owner  of  the  estate  or  by  the  curing  establishment 
receiving the coffee from the estate: 

  Provided that where no free sale quotas have been allotted to estates, the Chairman may 
allow  the  owner  of  any  estate  to  retain  with  himself  for  purposes  of  consumption  by  his  family 
and for purposes of seed, such quantity of coffee as the Chairman may think reasonable: 

  Provided further that where the Central Government is satisfied that it is not practicable for 
any class of owners producing coffee in any specified area to comply with the provisions of this 
sub-section  on  account of the small quantity of coffee produced by them or on account of their 
estates  being  situated  in  a  remote  locality,  the  Central  Government  may,  by  notification  in  the 
Official Gazette, exempt such class of owners from the provisions of this sub -section. 

(2) Delivery shall be made to the Board in such places, at such times and in such manner 
as  the  Board  may  direct,  and  such  directions  may  provide  for  partial  delivery  to  the  surplus 
pool  at  any  time  whether  or  not  at  that  time  the free sale quota has  been  exceeded;  and  the 
coffee  delivered  shall  be  such  as  to  represent  fairly  in  kind  and  quality  the  produce  of  the 
estate.  The  Board  may  reject  any  consignment  offered  for  delivery  which  does  not  satisfy  this 
requirement, but shall not reject any consignment merely for a defect  in curing. 

(3) Coffee  delivered  for  inclusion  in  the  surplus  pool  shall  upon  delivery  to  the  Board 
remain  under  the  control  of the  Board  which  shall  be responsible  for storage, curing  where 
necessary, and marketing of the coffee. 

(4) The Board shall from time to time prepare  a  differential  scale  for  the  valua -
tion of coffee, and shall in accordance with that scale classify the coffee in each consignment 
delivered for inclusion in the surplus pool according to its kind and quality , and shall make an 
assessment of its value based on its quantity, kind and quality. 

(5) The  Board  may  with  the  consent  of  a  registered  owner, treat  as  having  been 
delivered  for  inclusion  in  the  surplus  pool  any  coffee  from  such  estate  which  the  reg istered 
owner may agree to have so treated. 

(6) When coffee has been delivered or is treated as having been delivered for inclusion in the 
surplus  pool,  the  registered  owner  whose  coffee  has  been  so  delivered  or  is  treated  as  having 
been  so  delivered  shall  retain  no  rights  in  respect  of  such  coffee  except  his  right  to  receive  the 
payments referred to in section 34. 

26. **Sales of coffee by the Board.**—(1)  The Board shall take all practical measures to market 
the coffee included in the surplus pool, and all  sales thereof shall be conducted by or through the 
Board. 

(2) The Board may purchase for inclusion in the surplus pool coffee not delivered for inclusion 
in it. 

*Curing of Coffee*

27. **Coffee to be cured in licensed curing establishments.**—No  registered  owner  shall  cause  or 
allow  coffee  to  be  cured  elsewhere  than  in  a  licensed  curing  establishment,  whether  the  curing 
establishment is maintained by himself or by another person. 

28. **Licensing of curing establishments.**—Every establishment for curing coffee shall obtain from 
the Board a licence to operate as such. 

29. **Information to be supplied to the Board in connection with curing.** —(1) A registered 
owner  when  sending  coffee  to  a  curing  establishment  shall  report  to  the  Board,   separately  for 
each  estate  from  which  coffee  is  sent,  the  amount  of  coffee  sent;  and  the  curing  establishment 
shall,  in  accordance  with  such  instructions  as  may  be  issued  by  the  Board  and  having  regard  to 
the free sale quota of  the  estate where one has been allotted, apportion  each  such  consign-
ment into two parts, one part consisting of coffee intended for free sale and one part of coffee 
intended  to  be  delivered  for  inclusion  in  the  surplus  pool  and  shall  report  to  the  Board  the 
amount of coffee in each such part Where no free sale quotas have  been  allotted  to  estates, 
the  curing  establishment  shall  report  merely  the  whole  amount  of  coffee  sent  in  each  such 
consignment. 

(2) A registered owner curing coffee in a curing establishment maintained by himself shall 
supply to the Board the information specified in sub -section (1). 

(3) A  curing  establishment  which  buys  or  receives  uncured  coffee  from  any  person  shall 
ascertain the estate on which the coffee was produced and shall report to the Board the quantity 
of coffee so obtained and the estate or estates from which it came. 

(4) Every  curing  establishment  shall  maintain  accounts  in  such  fo rms  as  may  be  required 
by the Board and such accounts shall be open to inspection at any time by the Board or by an 
officer authorised in this behalf by the Board. 

*Finance*

30. **Separate funds to be maintained by the Board.**—The Board shall maintain two separate funds, 
a general fund and a pool fund. 

31. **General fund.**—(1) To the general fund shall be credited— 

  (a) all amounts paid to the Board by the Central Government under sub-section (1) of section 13; 
and 

  (b) any sums transferred to the general fund under the proviso to sub-section (2) of section 32; 
and 

  (c) all fees levied and collected by the Board under this Act. 

(2) The general fund shall be applied— 

  (a) to meet the expenses of the Board; 

  (b) to meet the cost of such  measures as the Board  may consider advisable to  undertake 
for promoting agricultural and technological research in the interest of the coffee industry in 
India; 

  (c) for  making  such  grants  to  coffee  estates  or  for  meeting  the  cost  of  such  other 
assistance  to  coffee  estates  as  the  Board  may  think  necessa ry  for  the  development  of 
such estates; 

  (d) to meet the cost of such measures as the Board considers advisable to undertake for 
promoting the sale and increasing the consumption in India and elsewhere of coffee produced 
in India; and 

  (e) to  meet  the  expenses  for  securing  better  working  conditions  and  the  provision  and 
improvement of amenities and incentives for workers. 

32. **Pool fund.**—(1) To the pool fund shall be credited all sums realised by sales by the Board of 
Coffee from the surplus pool. 

(2) The pool fund shall be applied only to — 

  (a) the  making  to  registered  owners  of  estates  of  payments  proportionate  to  the  value  of  the 
coffee delivered by them for inclusion in the surplus pool; 

  (b) the costs of storing, curing and marketing coffee deposited in and of administering the surplus 
pool ; 

  (c) the purchase of coffee not delivered for inclusion in the surplus pool: 

  Provided  that  where,  after  the  requirements  of  the,  clauses  of  this  sub-section  have  been 
met, there remains any excess in the pool fund, the Board may, with the previous sanction of the 
Central  Government,  transfer  the  whole  or  any  part  of  such  excess  to  the  credit  of  the  general 
fund. 

32A. **Power  of  the  Board  to  make  donation  to  the  Gandhi  National  Memorial 
Fund.**—Notwithstanding  anything  contained  in  section  32,  the  Board  may  apply  any  part  of 
the  pool  fund  to  the  making  of  a  donation  to  the  Fund  known  as  the  Gandhi  National 
Memorial Fund. 

33. **Power to borrow.**—The Board may, subject to any prescribed conditions, borrow on the 
security  of  the  general  fund  or  the  pool  fund  for  any  purposes  for  which  it  is  authorised  to 
expend  money from such fund, or on the security  of the coffee delivered or treated as delivered 
for  inclusion  in  the  surplus  pool  for  any  purposes  for  which  it  is  authorised  to  expend  money 
from the pool fund. 

34. **Payments to registered owners.**—(1)  The  Board  shall  at  such  times  as  it  thinks  fit  make  to 
registered owners who have delivered coffee for inclusion in the surplus pool such payments out of the 
pool fund as it may think proper. 

(2) The  sum  of  all  payments  made  under  sub-section  (1)  to  any  one  registered  owner shall 
bear to the sum of the payments made to  all registered owners the same proportion as the value 
of the coffee delivered by him out of the year's crop to the surplus pool bears to the value of all 
coffee delivered to the surplus pool out of that year ’s crop: 

  Provided  that  in  calculating  the  sum  of  all  payments  made  under  sub -section  (1)  and  the 
value of the coffee delivered to the  surplus pool out of the year’s crop, respectively, any payment 
accepted by  a registered owner  as final  payment in  immediate  settlement for coffee  delivered by 
him for inclusion in the surplus pool and the value of any such coffee shall be excluded. 

*Penalties and Procedure*

35. **Failure to register.**—Any owner of a coffee estate who fails to apply for registration in 
accordance  with  section  14  shall  be  punishable  with  fine  which  may  extend  to  one  thousand 
rupees and to a further fine which may extend to five h undred rupees for each month after the 
first during which such failure continues. 

36. **Contraventions of sections 16, 17 and 18.**—(1) Any registered owner who contravenes 
the  provisions  of  sub-section  (2)  of  section  16,  or  section  17  or  section  18,  any  licensed  curer 
or dealer who  contravenes  the  provisions  of  sub-section  (2)  of  section  16, shall  be 
punishable with fine which may extend to one thousand rupees. 

(2) When  a  registered  owner  is  convicted  under  this  section,  the  Board  may  thereafter 
deduct from any payment to be made under section 34 to such registered owner a sum equal 
to the value as estimated by the Board of any coffee unlawfully sold by  him. 

37. **Unlicensed during establishment.**—If  any  curing  establishment  operates  as  such  without  a 
licence, the owner shall be punishable with fine which may extend to five hundred rupees. 

37A. **Contravention of section 23 (1).** —Any  registered  owner  who  fails  to  furnish  the  return 
required  by  sub-section  (1)  of  section  23  as  required  by  that  sub-section  shall  be  punishable  with  fine 
which may extend to one thousand rupees. 

38. **False returns.**—Any person who makes in any return to be furnished under section 23 or 
in any report to be made under section 29 any statement which is false and which he knows to be 
false  or  does  not  believe  to  be  true  shall  be  punishable  with  fine  which  may  extend  to  one 
thousand rupees. 

38A. **Contravention of section 25.**—Any  registered  owner  or  licensed  curer  who  fails  to 
deliver  any  coffee  to  the  Board  as  required  by  or  under  sub -sections  (1)  and  (2)  of  section  25 
shall be punishable with fine which may extend to one thousand rupees, and the Court by which 
such  person  is  convicted  may  order  the  confiscation  and  delivery  to  the  Board  of  any  coffee  in 
respect of which the offence was committed. 

38B. **Powers to seize coffee withheld from inclusion in surplus pool.**—If the Board is satisfied 
that any coffee which is required under the provisions of section 25 to be delivered for inclusion in 
the  surplus  pool is  being  or  is likely  to  be disposed  of  otherwise  than  by  such  delivery,  the  Board 
may  order  the  seizure  of  such  coffee,  and  may  authorise  an  officer  of  the  Board  to  effect  seizure 
thereof  for  delivery  for  inclusion  in  the  surplus  pool,  and  such  authorisation  shall  be  sufficient 
warrant for such officer to take all steps necessary to secure possession of the coffee. 

39. **Obstruction.**—Whoever  obstructs  any  member  or  officer  of  the  Board  or  any  person 
authorised by the Board or by the Central Government in the discharge of any duty imposed on 
or entrusted to him under this Act, or who having control over or custody of any records fails to 
produce  such  records  when  required  to  do  so  or  refuses  information  lawfully  asked  for  by  a 
member or officer of the Board  by  a  person  authorised  by  the  Board  or  by  the  Central  Government  to 
inspect such records or ask for such information shall be punishable with fine which may extend to one 
thousand rupees. 

39A. **Offences by companies.**—(1) If the person committing any offence under this Act is a 
company,  every  person  who,  at  the  time  the  offence  was  committed,  was  in  charge  of,  and  was 
responsible  to  the  company  for  the  conduct  of  the  business  of  the  company  as  well  as  the  company 
shall be deemed to be guilty of the offence and shall be liable to be proceeded against and 
punished accordingly: 

  Provided  that  nothing  contained  in  this  sub -section  shall  render  any  such  person  liable  to 
punishment  provided  in  this  Act  if  he  proves  that  the  offence  was  committed  without  his 
knowledge or that he exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub -section  (1) where an offence under this Act 
has  been  committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with 
the  consent  or  connivance  of,  or  is  attributable  to  any  neglect  on  the  part  of,  any  director, 
manager, secretary or other officer  of the company, such director, manager, secretary or other 
officer  shall  also  be  deemed  to  be  guilty  of  that  offence  and  shall  be  liable  to  be  proceeded 
against and punished accordingly. 

*Explanation.*—For the purposes of this section,— 

  (a) “company” means any body corporate and includes a firm or other association of individuals; 
and 

  (b) “director” in relation to a firm means a partner in the firm. 

40. **Cognizance of offences.**—(1)  No  court  other  than  the  Court  of [^3][a  Metropolitan  Magis-
trate  or  a  Judicial  Magistrate  of  the  first  class]  shall  take  cognizance  of  any  offence  punishable 
under this Act. 

(2) No  Court  shall  take  cognizance  of  an  offence  punishable  under  section  35  except  on 
complaint  made  by  an  officer  authorised  in  this  behalf  by  the  State  Govern ment or  of  the 
offence  specified  in  sub-section  (2)  of  section  16  except  on  complaint  made  by  an  officer 
authorised  in  this  behalf  either  by  the  State  Government  or  by  the  Board or  of  an  offence 
punishable  under  any  other  section  except  on  complaint  mad e  with  the  previous  sanction  of 
the Central Government by an officer authorised in this behalf by the Board: 

[^3]. Subs. by Act 23 of 1994, s. 13, for “a Magistrate of the first class” (w.e.f. 14-1-1994). 


 
                                                      
  Provided  that  the  Central Government  may,  by  notification  in  the  Official  Gazette,  direct  that  the 
previous  sanction  of  the  Central  Government  shall  not  be  necessary  for  complaints  in  such  cases  or 
classes of cases as may be specified in the notification. 

*General*

41. **[Power of board to determine amount of coffee sold by an estate.]** *Rep.  by  the  Coffee 
(Amendment Act,* 1961 (48 of 1961), s. 12 (w.e.f. 19-4-1962). 

42. **Control by the Central Government.**—  (1) All acts of the Board shall be subject to the control 
of the Central Government which may cancel, suspend or modify as it thinks fit any action taken by the 
Board. 

(2) The  records  of  the  Board  shall  be  open  to  inspection  at  all  reasonable  times  by  any  officer 
authorised in this behalf by the Central Government. 

43. **Appeals to the Central Government.**—(1) Any person aggrieved by an order of the 
Board  refusing  a  licence  to  or  cancelling  the  licen ce  of  a  curing  establishment  may,  within 
sixty days of the making of the order, appeal to the Central Government. 

(2) Any  person  making  an  appeal  under  this  section  shall  pay  a  fee  of  five  rupees  which 
shall be credited to Central Revenues. 

44. **Inspection of records.**— Any  Person  authorised  in  this  behalf  by  the  Central 
Government  or  by  the  Board  or  any  Member  of  the  Board  so  authorised  by  the  Chairman  in 
writing  or  any  officer  of  the  Board,  may  enter  at  all  reasonable  times any  estate  or  any 
curing  establishment or  any  place  where  coffee  is  stored  or  exposed  for  sale, and  may 
require  the  production  for  his  inspection  of  any  records  kept  therein,  or  ask  for  any 
information relating to the production, storage or sale of coffee. 

45. **Accounts of the Board.** — (1) The Board shall keep accounts in such manner as may 
be prescribed of all money received and expended by it. 

(2) The accounts shall be kept separately for the general fund and the pool fund. 

(3) The  Board  shall  cause  the  accounts  to  b e  audited  annually  by  auditors  appointed  by 
the  Central  Government,  and  the  auditors  shall  have  power  to  disallow  any  item  of 
expenditure which has, in their opinion, been  incurred otherwise than in accordance with this 
Act. 

(4) The  Central  Government  may  on  the  application  of  the  Board  allow  any  item  of 
expenditure disallowed by the auditors under sub -section (3). 

46. **Inspection of records of the Board and obtaining of copies.** —  Any  registered 
owner may, subject  to  the  prescribed  conditions,  inspect  the  records  maintained  by  the 
Board  and  may  on  Payment  of  the  prescribed  fee  obtain  copies  of  any  proceedings  or  orders 
of the Board. 

47. **Contracts.** —  All  Contracts  for  the  sale  of  coffee  in  so  far  as  they  are  at  variance 
with the provisions of this Act shall be void: 

  Provided  that  nothing  contained  in  this  section  shall  apply  to  contracts  to  which  under 
section 47 of the Coffee Market Expansion  Ordinance, 1940 (13 of 1940), that Ordinance did 
not apply. 

47A. **Bar of legal proceedings.**—No  suit,  prosecution  or  other  legal  proceeding  shall  lie 
against the Board or any officer of the Board for or in respect of anything in good faith done or 
intended to be done under this Act. 

48. **Power of the Central Government to make rules.**—(1)  The  Central  Government  may,  by 
notification in the Official Gazette, make rules to carry out the purposes of this Act. 

(2) Without prejudice to the generality of the foregoing power, rules may be made providing for all 
or any of the following matters : — 

  (i) the  constitution  of  the  Board,  the  number  of  persons  to  be  appointed  as  members 
from  each  of  the  categories  specified  in  clause  (c)  of  sub-section  (2)  of  section  4,  the  term 
of office and other conditions of service of, the procedure to be followed by, and  the manner 
of filling vacancies among, the members of the Board; 

  (ii) the  circumstances  in  which,  and  the  authority  by  which,  members  may  be 
removed; 

  (iii) the  procedure  to  be  followed  at  meetings  of  the  Board  and  at  committees 
thereof  for  the  conduct  of   business  and  the  number  of  members  which  shall  form  a 
quorum at a meeting ; 

  (iv) the  maintenance  by  the  Board  of  records  of  business  transacted  by  the  Board  and  the 
submission of copies thereof to the Central Government ; 

  (v) the holding of a minimum  -number of meetings of the Board every year ; 

  (vi) the powers of the Board, its Chairman and committees thereof with respect to the incurring of 
expenditure ; 

  (vii) the conditions subject to which the Board may incur expenditure outside India ; 

  (viii) the  preparation  of  budget  estimates  of  receipts  and  expenditure  of  the  Board  and  the 
authority by which the estimates are to be sanctioned ; 

  (ix) the maintenance of the accounts of income and expenditure of the Board and the audit of such 
accounts; 

  (x) the deposit of the funds of the Board in banks and the investment of such funds ; 

  (xi) the re-appropriation of the estimated savings from any budget head to any other budget head; 

  (xii) the conditions subject to which the Board may borrow funds ; 

  (xiii)  the  conditions  subject  to  which  and  the  manner  in  which  contracts  may  be 
entered into by or on behalf of the Board ; 

  (xiv) the delegation to the committee or Chairman or Vice -Chairman or members or 
officers of the Board of any of the powers and duties of the Bo ard under this Act ; 

  (xv) the  staff  which  may  be  employed  by  the  Board  and  the  pay  and  allowances  and 
leave and other conditions of service of officers (other than those appointed by the Central 
Government) and other employees of the Board ; 

  (xvi) the travelling and other allowances of members of the Board and of committees 
thereof ; 

  (xvii) the maintenance  of the registers and other records of the  Board  and its  various 
committees ; 

  (xviii) the  manner  in  which  the free sale quota of coffee estates shall be 
determined ; 

  (xix) the manner in which the Board shall exercise its powers of buying and selling 
coffee ; 

  (xx) the appointment by the Board of agents ; 

  (xxi) the conditions to be fulfilled by a curing establishment before a licence  to operate as such 
can be issued ; 

  (xxii) the form of, and the particulars to be contained in, any returns or reports to be made to the 
Board under this Act ; 

  (xxiii) the form of, manner of application for, fees payable for, procedure in granting 
and conditions governing, the licences and permits to be issued by the Board ; 

  (xxiv) the collection of any information or statistics in respect of coffee or any product of 
coffee ; 

  (xxv) any other matter (other than any matter specified in section 15) which is to be or may be 
prescribed under this Act. 

[^1][(3) Every  rule  made  under  this  section  shall  be  laid,  as  soon  as  may  be  after  it  is  made, 
before  each  House of  Parliament,,  while it is  in session, for a total period  of  thirty  days  which 
may be comprised in one session or in two or more successive sessions, and if, before the expiry 
of  the  session  immediately  following  the  session  or  the  successive  sessions  aforesaid,  both 
Houses  agree in  making any  modification in  the rule  or  both  Houses  agree that the rule should 
not be made, the rule shall thereafter have effect only in such modified form or be of no effect, 
as the case may be; so, however, that any such modification or annul ment shall be without pre-
judice to the validity of anything previously done under that rule.] 

49. **Repeal of Act 14 of 1935.**—The  Indian Coffee Cess Act, 1935 (14 of 1935), is hereby 
repealed. 

50. *[Repeals and savings.] Rep. by the Repealing and Amending Act,* 1947 (2 of 1948), s. 2 
*and Sch.*

[^1]. Subs. by Act 48 of 1985, s. 5, for sub-section (3) (w.e.f. 15-5-1986).